DAOhub pt.1—Problems of current DAO HRM

5 min readAug 5, 2022

What’s wrong with current DAO hr structure

TLDR;

DAO = Internet Native Organization ∋ Decentralized Organization
Macro and Micro human resources of DAO are not being managed efficiently
How the structure of DAO will eventually evolve, having both asynchronous and synchronous efficiency

This is the first article of our trilogy to design the ultimate HR tool of DAO, DAOhub. In this article, we propose a macro HR management scheme appropriate to the Dao ecosystem, the challenges faced by both macro HR and the Dao ecosystem itself, as well as the form the Dao organization will take in the future.

1. Before discussing DAO HR, how would we define DAO?

Human resource management methodologies can vary greatly depending on the nature and characteristics of an organization. This category can further be subdivided according to the purpose of a DAO within its character, but first, we will review the general category of DAO.

DAO is an organization that exists entirely on the Internet; thus, it is governed by code and is free from physical and legal restrictions. By Inheriting the characteristics of internet native money, it overcame the limits of laws and national borders.

Defining DAO structures based on ideologies such as consumer democracy, decentralization of decision making, etc. are shallow and temporary definitions. For DAOs that can be redefined at any time wanted, such definitions can not be the essence of it.

2. Structural defects of DAO HR

2.1 Bob and Alice example

First, we will set a case.

Suppose you need to hire a developer as an HR manager of Inerslit DAO.

Although there are many talented developers in the area, it is difficult to find a candidate because they are unaware of the recruitment news in the first place.
To find talented developers, you may have to search around the various platforms since there is no single place where talented developers are assembled.
Fortunately, quality developers are out in the market, not just tied up in a single organization.
You got in touch with developer Bob after a few hours of Twitter search. However, Bob is suddenly not receiving any contacts.
You found Alice to replace Bob, but the quality of work done does not satisfy your standard.

There is no other substitute, no one to accuse, but the task needs to be done promptly. As such, currently, resources are not being supervised or managed well.

3. New DAO structure to maximize human resource efficiency

3.1 Macro / Micro HR of DAO

We have distinguished the methodology of managing HR based on the interior and exterior of the organization into Micro and Macro for the clarification of the DAO HR methodology.

The term Micro HR refers to internal processes such as promotions and personnel reviews. Macro HR refers to external processes such as entrusting or hiring workers who are still outside the organization. The scope of human resources management includes, but is not limited to, members and individuals and the relationships and structures between organizations.

The solution we present focuses on the appropriate allocation of human resources from a macro perspective, at the same time considering improvements in micro HR — quality assurance.

3.2 The structure is as follows :

Macro HR side

While the individual human resources were attributed or recruited to the task, subordinate organizations take over the role.
In addition, the individuals who were attributed to a single task are now integrated into the subordinate organization working on the same tasks together.

Micro HR side

Subordinate organization(mentioned above)works on a single objective by setting each unit synchronously.
Quality is assured within the organization.

3.2 Advantages are as follows :

Macro HR side

The asynchronous employment structure induces a healthy circulation of talented individuals — they are not tied up.
It fluently connects the supply and demand of the workforce — individuals specialized in a particular job are gathered.

Micro HR side

Clear responsibility for tasks and ensured quality of work
The efficiency of the work is improved.

This could further develop the workforce, the organization, and the DAO environment as healthy circulation of high-quality assured human resources continues.

However, what remains a challenge is that,

It remains a challenge to overcome the lack of practical connections between demand and supply of human resources despite structural changes. Hence a good joint between the supply and demand of human resources is essential.

Furthermore, even if the task-performing entity has changed from an individual to an organization, an effective recruitment methodology is still necessary to ensure the effective selection of human resources.

Tools are also essential to developing an innovative Macro HRM system aligned with the nature of DAO to address problems that remain difficult to resolve, despite structural modifications. Our next article will focus on designing the tool that complements and develops the DAO structure defined in this article.